Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 13P
To determine
Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance
Concept Introduction:
International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.
Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
9
How free trade zones or special economic zones affect exports.
5.
The Gap between Imports and Exports is called as
Question 5 options:
Trade gap
Trade Balance
Trade Deficit
Trading
7
Knowledge Booster
Similar questions
- If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?arrow_forwardAt one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export ratio at this time?arrow_forwardSuppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners?arrow_forward
- 2. The following data are available on the prices of imports and exports of a particular country Exports (S) Imports (S) 2019 60 100 2020 40 120 2021 80 140 Calculate an index for the terms of trade such that the index assumes the value of 100 in 2019. Also calculate the percentage changes in the index in 2020 and 2021.arrow_forward)6)arrow_forward6arrow_forward
- (Table: U.S. International Trade in Goods and Services, 2021, in millions of dollars. Details may not equal totals, due to seasonal adjustment and rounding.) The table contains data on U.S. trade in 2021.In 2021, the United States imported million worth of goods. Exports Goods Services Total Total 2021 -861,383 -1,091,384 230,001 2,532,955 1,761,709 771,247 a. Period $2,532,955 b. $758,888 C. -$861,383 Balance Goods d. $2,853,093 Imports Goods Services 3,394,339 2,853,093 541,245 Services Totalarrow_forwardNews Analysis: Exchange rates hold the key to trade between Japan and the United States (NEW) 3. Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.) EXCHANGE RATE (Dollars per yen) Exports from the U.S. Exports from the U.S. ? ( · Xarrow_forwardQuestion: In the context of international trade, what does a trade surplus indicate? a) Exports exceed imports b) Imports exceed exports c) Balanced trade d) No trade activity.arrow_forward
- 1.- The table below provides information on Hungary for 2003 and 2014. i. Define trade creation and trade diversion. ii. Obtain trade creation and trade diversion effects of economic integration (after joining the EU) for Hungary. Explain both the method used for calculation and your results. Thousands of millions of euros 2003 2014 GDP 75 103 42 94 Exports Imports Imports from EU 45 86 25 64arrow_forwardGive typing answer with explanation and conclusionarrow_forward8. At the end of June 21, the exchange rate between the US Dollar (USD) and the Canadian Dollar (CAD) was 1.2 CAD for 1 USD. Today is about 1.37. What is the likely impact on trade between the US and Canada? (a) Zero, since we do not like Canadian products (b) We should have observed a decline in US NX with Canada (c) We should have observed an increase in US NX with Canada (d) We should have observed NX = 0 with Canadaarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning